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At year-end, Schwartz has cash of $14,000, current accounts receivable of $70,000, merchandise inventory of $42, 600, and prepaid expenses totaling $4, 800. Liabilities of
At year-end, Schwartz has cash of $14,000, current accounts receivable of $70,000, merchandise inventory of $42, 600, and prepaid expenses totaling $4, 800. Liabilities of $20,000 must be paid next year. Assume accounts receivable had a beginning balance of $10,000 and net credit sales for the current year totaled $560,000. How many days did it take Schwartz to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.) A. 26 B. 52 C. 46 D. 7
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